Questions: How long has your Troop been selling Christmas Trees? Do you have a base of people who buy from you every year because they are supporting your Troop?
How active are you in the District (attending events, supplying volunteers, etc.)?
How old and successful is your Troop?
I'm guessing that during the process of applying for the permit, someone in the District (Council) decided they should do it instead and that is the basis of your questions.
I'm asking the questions to make a point - a lot of the answer depends on how much perceived leverage you have. If you're a Troop of 60 boys, with a history of holding successful tree sales that the people in the community support, that is active in the District and that has a history of producing Eagle Scouts, then a call from the Institutional Head to the Scout Executive can nip this in the bud in a minute - the Institutional Head simply tells the Scout Executive to back off, sign the application and don't even think of competing with the Troop's tree sales or the charter will be canceled, and there will be a front page news article telling the community exactly why the unit is no folding after so many years.
If you don't have that kind of perceived leverage, then either ignore the unit money earning application altogether, or have your sponsoring organization hold the sale as a fundraiser for their youth programs,
I'd also contact your tree vendor and let them know how disappointed you would be in them if they were to sell their trees to the district/council instead.
And if the District/Council succeeds in pulling your fundraiser in as their own, I would have as many boys and their parents that would volunteer for it, stand just outside the entrance to their lot (and on public property/public easements - and out of uniform) holding up signs telling people not to buy their trees from that lot because they stole your Troop's fundraiser.