Terrain shadow distance and lighting problem

Greetings.

I'm currently making a night scene in Unity, where the player can stand on the balcony and see the far away village on the other side of the river. Problem is, since the village is kinda far away, the shadow distance falls short of the village, which results in a highlighted(shadowless) terrain, and lights in the village not getting rendered.

So, my questions are:

1. What is the best solution for the highlighted terrain?

2. What should I do as substitute for the far away lights? Since increasing shadow draw distance weights heavily on the system, I'd rather not modify that.

Thank you in advance for any advice given!