By default terrain does not cast/receive shadows. Switch it’s lighting mode to Pixel in the terrain settings tab: Unity - Manual: Terrain settings
I suspect the Heron’s shader does not have support for casting shadows. Whether something casts or receives shadows is up to the shader that is used. Probably Heron uses some custom shader and whoever wrote the shader did not implement shadow casting bits.
If you have Unity 2.1+ then shadows are supported on terrain.
One thing to take into consideration is the quality settings: Default is good, that should show some shadows but with restricted casting distance.
Lower won’t show it. Also check if you have set an emulation.
If anyone else has this problem, I solved it this way:
In the tree prefab that the terrain editor uses, I set the leaves material of the tree to Opaque, and got no shadow. But if I also enabled the alpha clipping and slide it back and forth to any value, THEN I got shadows as expected. Odd.