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My question is this. Since I can prove I came up with this idea independently and before a patent application was filed, do I have any rights to produce this item myself?
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No. Patents are not like copyrights and trademarks -- preexisting use, or independent development, it not a defense to a patent infringement claim.
If you have sufficient evidence that you invented the thing before the other party did, you could try to invalidate their patent, either through the reexamination process or as a defense in litigation. But so long as their patent is valid, they are the only ones that can grant permission to use the particular patented thing.