There are multiple ways to solve this.
If you’re dragging many items, hold the drag just above the bottom edge of the Folders panel and that should cause it to scroll down; when it scrolls to where you want you can complete the drop. By the way, this is already a Mac standard technique; you can already do the same mid-drag auto-scrolling in a folder window on the Mac desktop.
JohanElzenga’s suggestion is another Mac standard technique that I also use. He talked about it with a scroll wheel mouse, and I’m adding that it also works on an Apple trackpad in case that’s what you’re using with your iMac: If you hold the drag over the Folders panel (or macOS Finder window) with one finger, you can use two other fingers to scroll that list until you see where you want to drop the items. The lesson here is that macOS supports two different simultaneous inputs for the same input device (and this is also true for iOS multi-touch on iPhone and iPad).
Yet another Folders panel technique is to apply a color label to the two folders that are far apart in the list. Then enable the Folders panel filter set to that specific color label. This will hide all folders except the ones with that color label, so now they’re next to each other, making the drag short and easy. So if the techniques above seem too tricky and complicated, this one is super simple and requires no special gestures or timing.
These tips also work with other Lightroom Classic list panels, such as Collections and Publish Services.