Contact Shadow on Distant Terrain

[anonymous_user_4e0ad4ce]

I have noticed that contact shadowing seems to do ugly things to large distant objects like mountains in a terrain.
Here is a screenshot with.

Screenshot without.

I like the effect it has on foreground foliage. But would like to avoid the ugly shadows on the distant terrain.
Currently there is no kind of depth fade off. How would someone go about editing the effect to do this?

Thanks!
Tim