In North Carolina, this funding first went to the University of North Carolina, but in 1887, the state legislature established the North Carolina College of Agriculture and Mechanic Arts (now NC State) as the state's land-grant institution.n North Carolina, this funding first went to the University of North Carolina, but in 1887, the state legislature established the North Carolina College of Agriculture and Mechanic Arts (now NC State) as the state's land-grant institution.