Time will still pass when the nighttime is skipped, so crops will still grow and other in-game changes will occur as usual.
The devs confirmed that the ability to skip the night has been added and can be activated by approaching the farmer’s house.
Modding tools won’t be in the PS4/Xbox One versions of the game, but the developers will pick the best mods from the PC version and port them over to the console versions as free DLC.