The little village the Farmer's Wife lives in is west of the Western Tyr Lysia portal. To get there you need to follow the road to Noriath Temple. This is just north of the portal and before you reach the turn of to the monolith. There is a narrow path heading west from the road just before you reach a bridge. You need to take this path to get to the village.
Talk to the Farmer's Wife to learn that her husband is missing.
My husband has disappeared in the forest. Please go and look for him!
I've been waiting in vain for days for my husband to return. He went into the forest to collect mushrooms. I’m so worried that something has happened to him. Please find him for me!
Follow the path back to the road, turn northward and cross the bridge. There is a cemetary a short distance past the bridge to the right.
Retrieve the Bone Hand from the cemetery and return it to the Farmer's Wife for your reward.
I suspected as much. Everything used to be so peaceful here, but now these horrible undead are everywhere. May the Goods help us!