Newbee07:
I might have missed something, but how many hives do you have? I read it is your first season and I'd be really impressed if you had enough honey to sell the first season. I mention this because netting excess honey is not an easy thing to do in year one, except that for gifts for family and friends.
I can imagine the felling you have seeing such a large operation moving into your area, but if he knows nothing about bees, but has an bottomless checkbook - as mentioned before, chances are YOU will make out better as he sees his money flushing down the drain.
Honestly, unless you have dozens of hives as your first attempt, I'd keep the mindset of a backyard beekeper in mind and not look for a profit - your first and main concern is survivability of your colonies. Leaving them the most honey you can (considaring your location and length and brutality of Winter) is critical, anything after that is yours BUT trying to guess what they will need and what you should take SHOULD BE more of an after-thought in Spring, not a guess in the Fall before setting them up for Winter.
I can understand your passion and your concerns, but work and grow your hives as best you can, what goes on OUTSIDE of your beeyard is out of your hands and surely shouldn't eat you up at night - remember that all things out of your control should never worry you, having knowledge of his intent is worth more than worrying about his effect.
Chances are with a THOUSAND HIVES, he is unlikely to keep them all there permanently anyways, he is his own worse nightmare when it comes to food sources, unless they area you live in can sustain his hive count - and if it can sustain his, it can also sustain yours.
If his plans are to migrate the bees, then he won't effect you nearly as much as you suspect. So honestly, build your hives UPWARDS not OUTWARDS to keep strong viable hives as you closely watch him. Building OUT in numbers (increasing your hive count) sounds great and early in the second year it is really possible, but in year one (in my opinion) try building upwards with plenty of room for hive growth and honey storage as the hives build up and needs the extra space. Don't stack supers on any sooner than your bees call for them. Keep them capable of protecting their home, give them just enough room to grow and super up rather than letting them go to swarming.
Collecting your neighbors swarms are fine, but splitting your own this soon usually leaves one or both hives weaker this late into the Season. Of cource I've seen 7 and 8 pound swarms before, they sure sound capable of growing fast, but remember unless you have predrawn frames, your housed swarms will spend most of their energy drawing comb and trying to make a viable home before cold weather sets in. You play a great role in all this, learn the basics from watching bee-behaviour - our forum is wonderful in helping newbees spot the unique signs bees have, and bees react in very predictable ways - learn all you can here and apply it when looking at and in your hives.
Hope this has helped some. I would watch your neighbor, but surely wouldn't let it upset me - your job is to grow your beeyard in a logical and well paced way, he may effect food sources if he ever gets his yard in operation, but you need to adjust to his operation by observing your bees - not his. Good luck and keep us informed.