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I don't know what the laws are about this where you live, but here in Ohio, if someone has planted a garden even if the property didn't belong to them, according to state law they are allowed to reap their produce...harvest it whatever...unless the property owner pays them fair value for the harvest.
I would contact your local court house and ask them who you should speak with to find out if there are any laws regarding this. You should make sure that there isn't any legal legs for them to stand on if you fence it in.
We are having a similiar issue with our new neighbor, except that they are trying to claim OUR fence as theirs and are even saying THEY paid for and put the fence in (not true!).
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