When this magical blight first appears, it will be incredibly disruptive to the biosphere, and if it happens suddenly (in evolutionary time, ie less than hundreds or thousands of years) there will be mass extinctions both of animal species which don't reside in the safe zone, and plant species which rely on such animals for pollination.
Assuming that this construct has been in existence for enough time to stabilise (or the humans did some very speedy ecological engineering!), there will be a hierarchy of land surrounding the safe zone. The land closest to the boundary will be by far the most productive, because it can be fertilised by animals grazed out during the day and herded in at night; and pollinated by bee hives maintained within the safe zone. It will also be the land which can be most intensively farmed because it requires less commuting time for farm workers. There will be intensive competition between arable and pastoral farming in these areas, but since the greatest range that pollinators like bees will travel seems to be about 5km it would make most sense to grow arable crops in this immediate vicinity, with wind-fertilised grass pastures beyond for animals that are herded in each night, out to the limit of what land can be accessed in time.
A human can walk at about 5 km/h, so the absolute maximum radius for this 'tillable zone' is about 41km; but fields this far out would only be accessible for an hour a day for one month of the year, hardly intensive farming. The furthest a field could be from the boundary to still be reachable throughout the year would be 9km.
Farming, especially using medieval technology, was a very time-intensive occupation, with farmers labouring from before sunrise until after sunset every day. This would be inevitably curtailed by the 'curfew', but the intensity of farming would be reduced as a result.
In the UK we get around 4,380 hours of daylight in total per year, distributed cyclically which we can naively model as:
$$Y_0 = \int\limits_{0}^{365}{4.5 \ sin(\frac{2 \pi x}{365} + 12}) dx = 4380$$
If we equally naively assume that the yield of a piece of farm land is directly proportional to the number of hours spent working it, and that medieval farmers will work every daylight hour they can, then the yield of a piece of land at distance $R$ from the boundary is:
$$Y(R) = \int\limits_{0}^{365} \max \left( 0, 4.5 \ sin \left( \frac{2 \pi x}{365} + 12 - 2 \frac{R}{5} \right) \right) dx $$
Which you can see here plotted from the spring equinox. The flat red area is the zone unreachable at that time of the year.
Assuming that the boundary is circular with radius $r_0$, then the total yield of the annulus of reachable land around the boundary is:
$$Y = \int\limits_{r=r_0}^{\infty} \int\limits_{\theta=0}^{2\pi} r \int\limits_{0}^{365} \max \left( 0, 4.5 \ sin \left( \frac{2 \pi x}{365} + 12 - \frac{r}{2.5} \right) \right) dx\ d\theta\ dr $$
Wolfram Alpha will helpfully solve this crazy integral, and gives me that $Y$ out to a distance of 20km (comfortably the 'zone of influence' of a medieval village) is about 55% of the 'normal' level of working (where farmers are distributed across the land such that they don't have to commute). Out to 40km (the point where the infected land becomes basically unreachable) the overall workability falls to less than 23%; but within the 5km 'pollination zone' the workability is about 88%.
In short, the farming yield of a village in this situation would be reduced by (at least) somewhere between 15% and 50%, with some alterations needed in distributions of farm types. On a purely logistical level, this isn't complete deal-breaker for the survival of the settlement.
Of course there are lots of other reasons why an isolated medieval settlement like this is not viable, of whatever size; external resources like metals and fuel will be quickly exhausted: timber in particular will be an extremely dangerous commodity to harvest, as lumberjacks will need to travel far to the retreating forests and then return with heavy loads as the sun sinks ominously. But you asked specifically about farming, and from a logistical standpoint at least, it's not impossible.